The addon AvaTax Sales Tax Automation can be used with X-Cart Multivendor:

  • in both the “Warehouse” and “Vendors as separate shops” multivendor modes;
  • regardless of whether tax collection has been set up as the responsibility of the site owner or of the vendors.

Unlike X-Cart’s Sales tax, VAT/GST or Canadian taxes addons, AvaTax Sales Tax Automation can safely be used for U.S. multivendor X-Cart stores operating in the “Vendors as separate shops” mode in which the collection of sales tax has been configured as the responsibility of the vendors (Sales tax is the responsibility of=Vendor).

To use AvaTax Sales Tax Automation, the store administrator will have to get an AvaTax account and complete the required configuration in the AvaTax Admin Console and the X-Cart store as described in Getting started with AvaTax Sales Tax Automation.

The vendors will not need a separate AvaTax account; however, to ensure correct tax calculation in a Multivendor store via a single AvaTax account, the store administrator will need to properly configure the nexus jurisdictions for the store’s AvaTax account in the AvaTax Admin Console including all the states where the store/marketplace has nexus; they will also need to make sure all the nexus states are specified properly in the X-Cart store’s settings:

  • In the case of a store/marketplace where sales tax collection has been configured as the responsibility of the site owner (Sales tax is the responsibility of=Site owner), this means that the administrator will have to find out in which states the store/marketplace has nexus and 1) include these states in the nexus jurisdictions for the store’s AvaTax account via the AvaTax Admin Console; 2) make sure these states are specified in the “Tax Calculation settings” section of the AvaTax Sales Tax Automation addon settings page. The latter can be accomplished as follows:

    • If the store has nexus in all the U.S. states, the administrator should adjust the setting Automatically calculate taxes for to “All US States”. auto_calc_taxes.png

    • If the store has nexus in just some of the states, the administrator should adjust the setting Automatically calculate taxes for to “Specific states” and specify those states in the Specify US states field below. us_tax_calculation1.png

  • In the case of a store/marketplace where sales tax collection is the responsibility of the vendors (“Vendors as separate shops” mode + Sales tax is the responsibility of=Vendor), this means that the administrator will have to check in which states each of the vendors has nexus and 1) include these states in the nexus jurisdictions for the store’s AvaTax account via the AvaTax Admin Console; 2) make sure each of the vendors has their nexus states specified in the “US tax calculation” section of their vendor profile Financial details. The latter can be accomplished as follows:

    • If the vendor company has nexus in all the U.S. states, the administrator should make sure the setting Automatically calculate taxes for is set to “All US States”. us_tax_calculation.png

    • If the vendor company has nexus in just some of the states, the administrator should make sure the setting Automatically calculate taxes for is set to “Specific states”, and those states are listed in the Specify US states field below. us_tax_calculation2.png

Vendors should be instructed to specify their nexus states via My account > Financial details: us_tax_calculation_in_vendor.png

Note that failure to specify the states in the Specify US states field after adjusting the setting Automatically calculate taxes for to “Specific states” will result in that no tax calculation requests will be sent to AvaTax to calculate sales tax for the vendor’s products; for this reason the store administrator should double check that the information regarding the vendor’s nexus states has been properly provided by them via the Financial details section (If not, the administrator should request that the vendor fixes it, or fix it themselves for the vendor).